Franklin Resources (NYSE:BEN) Shares Gap Up Following Strong Earnings

Franklin Resources, Inc. (NYSE:BEN) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $20.15, but opened at $20.80. Franklin Resources shares last traded at $20.28, with a volume of 477,998 shares trading hands.

The closed-end fund reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.03. Franklin Resources had a net margin of 5.48% and a return on equity of 9.62%. During the same period in the prior year, the business earned $0.65 EPS.

Franklin Resources Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 10th. Stockholders of record on Monday, December 30th were paid a $0.32 dividend. This is an increase from Franklin Resources’s previous quarterly dividend of $0.31. The ex-dividend date was Monday, December 30th. This represents a $1.28 annualized dividend and a dividend yield of 5.76%. Franklin Resources’s dividend payout ratio (DPR) is presently 148.84%.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on BEN shares. StockNews.com upgraded shares of Franklin Resources from a “sell” rating to a “hold” rating in a research note on Thursday, November 14th. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Franklin Resources from $20.00 to $19.00 and set a “hold” rating on the stock in a research note on Tuesday, November 5th. TD Cowen decreased their price target on shares of Franklin Resources from $20.00 to $18.50 and set a “hold” rating on the stock in a research note on Tuesday, November 5th. UBS Group decreased their price target on shares of Franklin Resources from $24.00 to $21.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 22nd. Finally, Evercore ISI decreased their price target on shares of Franklin Resources from $20.00 to $19.00 and set an “underperform” rating on the stock in a research note on Friday, October 4th. Four investment analysts have rated the stock with a sell rating and eight have issued a hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $20.18.

Institutional Investors Weigh In On Franklin Resources

Institutional investors and hedge funds have recently made changes to their positions in the company. Virtu Financial LLC acquired a new stake in shares of Franklin Resources in the 3rd quarter valued at $880,000. FORA Capital LLC acquired a new stake in shares of Franklin Resources in the 3rd quarter valued at $1,857,000. Principal Financial Group Inc. boosted its stake in shares of Franklin Resources by 9.3% in the 3rd quarter. Principal Financial Group Inc. now owns 381,192 shares of the closed-end fund’s stock valued at $7,681,000 after purchasing an additional 32,490 shares in the last quarter. Charles Schwab Investment Management Inc. raised its holdings in shares of Franklin Resources by 44.7% in the third quarter. Charles Schwab Investment Management Inc. now owns 2,998,574 shares of the closed-end fund’s stock valued at $60,421,000 after buying an additional 925,590 shares during the last quarter. Finally, Swedbank AB raised its holdings in shares of Franklin Resources by 78.3% in the third quarter. Swedbank AB now owns 62,076 shares of the closed-end fund’s stock valued at $1,251,000 after buying an additional 27,259 shares during the last quarter. Institutional investors and hedge funds own 47.56% of the company’s stock.

Franklin Resources Price Performance

The stock has a fifty day moving average of $20.85 and a 200-day moving average of $21.01. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.92. The firm has a market capitalization of $11.64 billion, a P/E ratio of 25.84, a PEG ratio of 1.35 and a beta of 1.41.

About Franklin Resources

Franklin Resources, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries.